Ringgit

The ringgit, officially the Malaysian ringgit, is the currency of Malaysia. It is abbreviated MYR in ISO 4217 and is commonly represented by the symbol RM before amounts. The ringgit is divided into 100 sen. It is issued and maintained by Bank Negara Malaysia, the country’s central bank, and is used in everyday transactions through banknotes, coins, and electronic payment systems.

Etymology and naming: The term ringgit derives from the Malay word ringgit, meaning jagged or serrated, a reference to the edges of early coins. The name is used to describe the currency and is distinct from the broader economic concept of money.

History and monetary policy: The ringgit was introduced in 1967, replacing the Malaya and British Borneo dollar. After the 1997–1998 Asian financial crisis, Malaysia fixed the ringgit to the U.S. dollar at 3.80 per dollar for a period, before moving in 2005 to a managed float regime. Since then, the currency has traded in a market-determined range with central-bank interventions as needed to smooth volatility.

Currency forms and circulation: Bank Negara Malaysia issues banknotes and coins in a range of denominations. The ringgit serves as the legal tender for all domestic transactions in Malaysia and is also traded on international foreign exchange markets. Its value is influenced by factors such as global trade, commodity prices, and the monetary policy stance of Malaysia.

See also: Economy of Malaysia; Bank Negara Malaysia; Southeast Asian currencies.